Walmart shares at record. Comments from major US retailer gives heartbeat of the consumer

It is not thought to be a Mag 7 but it does show the heartbeat of the US consumer.

Walmart announced earnings today and beat on both EPS and Revenues. Below is a summary of the numbers:

• Q3 2024 Adj. EPS: $0.58 (beat expectations of $0.53)
• Q3 2024 Revenue: $169.50 billion (beat expectations of $167.68 billion)
• Total US Comparable Sales (Excluding Gas): +5.5% (beat expectations of +3.8%)
• FY 2024 Adj. EPS Guidance: $2.42-$2.47 (raised from $2.35-$2.43; expectations: $2.45)
• Walmart-Only US Stores Comparable Sales (Excluding Gas): +5.35% (beat expectations of +3.73%)
• Sam’s Club US Comparable Sales (Excluding Gas): +7% (beat expectations of +4.22%)

CNBC is outlining comments from Walmart CFO John David Rainey. Some of the comments:

• Thanksgiving basket costs reduced by 3% from last year.
• 75% of share gains are from households earning $100K+.
• Convenience trend: 30% of online orders included extra payment for 1-3 hour faster delivery.
• Feels similar to last year, with a positive outlook.
• Halloween and back-to-school sales were good but not exceptional.
• Gaining market share in categories; membership income and advertising are improving margins.
• Food category experiencing low single-digit growth.
• General merchandise and consumables prices are down.
• Overall basket cost is flat.
• Hurricane boosted revenue due to stocking up, offset by expense impacts.
• Company provided 178 truckloads of supplies for hurricane relief.
• 2/3 of items are made, grown, and assembled in the U.S.
• Tariffs have been inflationary for the past seven years.
• Any additional tariffs will further drive inflation.

Overall, the market is pleased with shares trading up $2.27 or 2.69% at $86.34. The high price did extend to $87.88 before some profit-taking. Nevertheless, the shares are on pace for a new record close (above $85.50).

Shares for the year are up a whopping 64.70%. Technically, the closest support comes against an increasingly steeper trend line. That comes in at $84.51. Its 50-day moving average is lower at $81.57. It’s 100-day moving average is down at $76.61. Ultimately, those levels would have to be broken to increase the bearish bias technically.

In six key

This article was written by Greg Michalowski at www.forexlive.com.